General Trend
- Australia’s Resources index rises over 3% amid strength in iron-ore producers; Vale cut production outlook, China iron ore FUTs trade at record high
- Gainers in Japan include Transportation firms, Pharma index lags
- Tech firms in HK rise after recent losses (Alibaba, Xiaomi)
- Shanghai Composite lagged during morning session amid declines in Property and Financial firms
- Chinese LCD components firm missed bond interest payment [Dongxu Optoelectronic Tech]
- South Korea’s Com2uS Corp rises over 10% on Chinese gaming permit
- Korean Won (KRW) strengthens above the 1,100 level
- BoJ official Suzuki commented on steeper yield curve for super-long JGBs, ETF purchases
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened +0.5%
- QAN.AU Restructuring and recovery program remains on track to deliver at least A$1.0B in annual savings starting FY23; Guides FY21 to have “substantial loss”
- (AU) Australia Nov Final PMI Services:55.1 v 54.9 prelim (confirms 3rd consecutive month of expansion)
- (AU) China to allow Australia thermal coal cargo to come ashore even with ban (4 ships total)
- Reserve Bank of Australia (RBA) to buy A$3.0B in Govt bonds v A$2.0B prior; A$2.0B under bond purchase program; A$1.0B for 3-year yield target
- (AU) Australia Oct Trade Balance (A$): 7.5B v 5.8Be
- (AU) Australia Oct Home Loans Value M/M: 0.7% v 2.8%e; Investment lending M/M: 0.3% v 2.5%e
- (NZ) Reserve Bank of New Zealand (RBNZ) Gov Orr: Reiterates wanted the right and not obligation to implement negative official cash rate (OCR); actual use of negative OCR will depend on the economic context – speech Monetary Policy Challenges for a Small Open Economy during COVID-19′: (yesterday after the close)
Japan
- Nikkei 225 opened -0.2%
- (JP) Bank of Japan (BOJ) Official Suzuki: BOJ will work on maintaining market stability; Will work to maintain access for corporate lending
- (JP) Japan Nov Final PMI Services: 47.8 v 46.7 prelim (confirms 10th straight contraction)
- (JP) Bank of Japan (BOJ) expected to consider extending virus program at its next meeting, Dec 17-18th – press
- (JP) Japan Said to ban sale of any new gasoline powered vehicles in the mid 2030s – Press
- (JP) Japan Econ Min Nishimura: To summarize economic measures during week of Dec 7th (after the close yesterday)
- (JP) Japan PM Suga to hold press conference Friday, Dec 4th – Japan press
- (JP) Japan Chief Cabinet Sec Kato: Looking at impact of China export law on Japan firms; Prison Sentences in Hong Kong are raising free speech concerns; Trade min considering support for shifting to electric power vehicles
- (JP) Japan MoF sells ¥900B v ¥900B indicated in 0.6% 30-year JGBs, avg yield 0.6480% v 0.6430% prior, bid to cover: 3.49x v 3.76x prior
Korea
- Kospi opened +0.4%
- (KR) South Korea parliament approves KRW558T 2021 budget v KRW555.8T proposed in Sept
- (KR) South Korea Nov Foreign Exchange Reserves: $436.4B v $426.5B prior (8th consecutive increase)
- 078340.KR China Govt issues permit to release Summoners War game in China (1st time ever getting approval in 4-years) – Korean press
- (HK) Hong Kong Nov PMI (whole economy): 50.1 v 49.8 prior (highest level since March 2018)
China/Hong Kong
- Hang Seng opened -0.1%; Shanghai Composite opened -0.0%
- (CN) CHINA NOV CAIXIN PMI SERVICES: 57.8 V 56.4E (highest reading since June, second quickest since Apr 2010); PMI Composite: 57.5 v 55.7 prior (highest since March 2010, 7th consecutive month of expansion)
- (CN) US House passes China delisting bill; now goes to Pres Trump to sign; Follow Up Trump expected to sign bill
- (HK) Macau Gaming Inspection and Coordination Bureau denies report yesterday that casinos were being asked to consider the use of the digital yuan
- (CN) US has placed ban on cotton imports from XPCC (China co.) – financial press
- (CN) China PBoC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v Injects CNY10B in 7-day reverse repos prior; Net Drain CNY70B v Net drain CNY110B prior
- (CN) China PBOC sets Yuan reference rate: 6.5592 v 6.5611 prior
- (CN) China State Council: Made arrangements to step up implementation of the Regional Comprehensive Economic Partnership (RCEP) – Xinhua
Other
- (SG) Singapore Nov PMI (whole economy): 46.7 v 48.6 prior (10th month of contraction)
- Reportedly OPEC+ talks today focused on proposals for gradual tapering of production cuts – press
North America
- (US) House of Representatives to consider a bill to decriminalize Marijuana on Thursday (Dec 3rd)
- CRWD Reports Q3 $0.08 v $0.00e, Rev $232.5M v $214Me
- (US) Fed’s Kaplan (FOMC voter): next 3-6 months will be challenging; growth is decelerating and could stall out if virus situation gets worse – CNBC interview
Europe
- (EU) France said to have told Chief negotiator Barnier that the Brexit deal is at risk for a veto if he gives in to UK demands
- (IT) Italy announces new coronavirus measures: to ban movements between regions from Dec 21st through Jan 6th
Levels as of 12:15ET
- Hang Seng +0.5%; Shanghai Composite -0.2%; Kospi +0.3%; Nikkei225 -0.2%; ASX 200 +0.5%
- Equity Futures: S&P500 -0.2%; Nasdaq100 +0.1%, Dax -0.2%; FTSE100 -0.4%
- EUR 1.2126-1.2104; JPY 104.53-104.41; AUD 0.7419-0.7398; NZD 0.7075-0.7053
- Commodity Futures: Gold +0.5% at $1,838/oz; Crude Oil -0.2% at $45.17/brl; Copper -0.1% at $3.49/lb
